Strategically located in Southeast Asia, Hong Kong is considered the ultimate jurisdiction for international companies. It has a highly supportive administration, low tax regime, and also makes it easy to reach the neighboring markets. Even with the long list of benefits that come with running a business in Hong Kong, managing all the executive activities, especially payroll, can be an uphill task.
The Hong Kong Companies Ordinance and Labor Ordinance come with strict guidelines for payroll management, which every business must follow. If you have other urgent tasks, such as scaling operations to the neighboring markets or product development, it is advisable to go for payroll outsourcing. Keep reading to learn about the main benefits that come from payroll outsourcing in Hong Kong.
What is Payroll Outsourcing?
Payroll management is the administrative activity of compensating staff for the services rendered. It also entails preparing financial records of employees’ gross earnings, deductions, net pay, and meeting payroll-related tax liability. Therefore, payroll outsourcing means that instead of handing the tasks on your own or with an in-house team, the task is done by a third party.
Depending on the nature of your company and the schedule of tasks at hand, you might want to outsource the entire payroll management or only a portion of it. Remember that no matter the location of your company, payroll outsourcing in Hong Kong offered by experts will be able to help.
Payroll Functions that You Can Outsource
Here are some of the functions that you should anticipate from using a good firm for payroll outsourcing in Hong Kong.
- Staff payroll account set up: This involves gathering and preparing the information for processing individual payroll. It also includes setting up the desired payment method.
- Calculating the gross and net pay for each staff: This function is executed in line with the employee’s contractual agreement. The time worked in the entire month is also factored in when calculating payments.
- Managing applicable deductions: In Hong Kong and most countries across the globe, there are a number of deductions that have to be made when processing payroll. For example, every employer has to deduct the provident fund from staff salaries. Therefore, the outsourced firm will ensure that all the deductions are made accurately and on time.
- Withholding all applicable payroll-related taxes: In addition to mandatory deductions, the payroll outsourcing in Hong Kong will also ensure you make the required tax withholding. Then, the money will be remitted to the Inland Revenue Department (IRD).
Special Benefits of Payroll Outsourcing in Hong Kong
One of the main benefits of using payroll outsourcing in Hong Kong is that it can help you to save time. The process of calculating staff salaries and making all statutory deductions can be time-consuming. Therefore, working with experts means that the task is completed fast, and you can save time to focus on other things. Other benefits include:
- Outsourcing payroll management can help to cut down costs.
- You will not have to worry about the payroll processing software or its maintenance because the outsourced firm will be responsible for it.
- Your company’s payroll is handled by the best experts, but you do not have to hire them on a full-time basis.
- Since the experts in payroll management have a lot of experience, you will be advised on how to improve the company’s working strategy for higher productivity.
- Using payroll outsourcing comes in handy for compliance with labor laws in Hong Kong or the country of interest.
The benefits we have listed for payroll outsourcing in Hong Kong are only a few. To enjoy even more, you should ensure to work with the best firm, such as Primasia. They have top-rated professionals and you can count on them for payroll management, tax matters, and accounting. Contact Primasia now for all that you need to know about payroll outsourcing.